In your working papers, indicate the assumption from the list below that best matches each numbered statement. Accounting Period, Business Entity, Going Concern 1. Accounting reports may cover a month, a quarter, or a year. 2. Accountants expect a business to last indefinitely. 3. The personal property of a business owner is not included in the accounting records of the business. 4. The business has been in operation for several years and is expected to continue. 5. An owner’s personal activities or properties are not mixed with the business activities or properties. 6. The accountant’s report shows how much profit the business earned for one month.

Which of the following is not an essential part of the accounting records?

A. The journal

B. The ledger

C. The chart of accounts

D. The worksheet

Suppose you work for a company called Greenwood Sky Divers as a sky-diving instructor. Since you have your pilot's license, you also give flying lessons on the side. You and the owner of Greenwood Sky Divers both belong to a local club, the Greenwood Eagles, whose members get together for sky dives on weekends. Greenwood Sky Divers is a sole proprietorship that has been in business for six years. The owner of the company regularly reviews financial reports, and the company's accountant prepares end-of-the-year reports to compare results from one year to the next. Decide what information in this paragraph is relevant to accounting for Greenwood Sky Divers. Identify the accounting assumptions for Greenwood, and give an example of each assumption from the information given here.

Why do people move to urban areas?

Arnold Industries has pretax accounting income of $33 million for the year ended December 31, 2016. The tax rate is 40%. The only difference between accounting income and taxable income relates to an operating lease in which Arnold is the lessee. The inception of the lease was December 28, 2016. An$8 million advance rent payment at the inception of the lease is tax-deductible in 2016 but, for financial reporting purposes, represents prepaid rent expense to be recognized equally over the four-year lease term. Required: 1. Determine the amounts necessary to record Arnold’s income taxes for 2016 and prepare the appropriate journal entry. 2. Determine the amounts necessary to record Arnold’s income taxes for 2017 and prepare the appropriate journal entry. Pretax accounting income was $50 million for the year ended December 31, 2017. 3. Assume a new tax law is enacted in 2017 that causes the tax rate to change from 40% to 30% beginning in 2018. Determine the amounts necessary to record Arnold’s income taxes for 2017 and prepare the appropriate journal entry. 4. Why is Arnold’s 2017 income tax expense different when the tax rate change occurs from what it would be without the change?

Match the letter next to each form of business with the appropriate items in the following list of advantages and disadvantages. You may use a letter more than once. Use the form provided in your working papers. A. Sole Proprietorship B. Partnership C. Corporation 1. Easier to raise money 2. Limited expertise 3. Higher start-up costs 4. Owner has total control 5. Shared profits 6. Higher taxes 7. Fewer regulations to follow 8. Easy transfer of ownership 9. Risk of conflict between owners 10. Easy to expand

Identify the appropriate assumption underlying useful accounting information for each description 1 through 4 .

1. Hancock Hats reports its sales on a monthly basis.
2. Joann Hancock, owner of Hancock Hats, keeps the accounting records of her business separate from her personal accounts.
3. Hancock Hats reports its financial statements assuming it will continue to be in business for the foreseeable future.
4. Hancock Hats expresses its financial statements using the U.S. dollar.

Imagine that you are the manager of Valley Skateboard Shop. The accountant for the business has delivered the news that sales are down by 15 percent compared to last month. She also reports that the rent on the building will be increasing next month by $100. You believe the shop needs a more experienced salesperson and that the building needs new paint and awnings. How might the information delivered by the accountant affect your decisions and course of action?

Suppose two transformations are performed on a single point: a translation and a reflection. Does the order in which the transformations are performed make a difference? Does the type of translation or reflection matter? Explain your reasoning.

A bag contains balls with the colors shown. Find the probability for randomly selecting balls, one after the other, without replacing them. green and then green

green green red red red red blue blue blue

What are the five fundamental principles of accounting information systems?

Find the value of k so that the ordered pair satisfies the equation. kx+3y=7; (-1, 3)

At the end of a fiscal period when a balance sheet is prepared, from which document may we find the ending owner’s capital balance? a. Worksheet b. Income Statement c. Trial Balance d. Statement of Changes in Owner’s Equity

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